Government budget falls short of industry expectations

Government budget falls short of industry expectations

BLOG · BY TTF CEO DAVID HOPKINS · 29 October 

The TTF takes a look at the government’s annual budget.

This week saw the government release its annual budget ahead of the upcoming fiscal year.

At first glance, the budget announcement was slightly disappointing given the limited housing, environment, and energy announcements.

Despite hosting COP26 next week, the budget was light in the way of environmental policy detail. However, given the release of the net-zero strategy last week this can largely be forgiven.

Some useful policy information did emerge on housing policy following the re-announcement of a £24bn multi-year housing settlement.

This includes delivering new homes on 15,000 hectares of brownfield land as well as the Affordable Homes Programme – a £11.5 billion fund for 180,000 homes from 2021 to 2026.

The settlement also pledged £5bn to remove unsafe cladding from high-risk buildings via a new Residential Property Developer Tax.

The government has taken some action to tackle ongoing logistical issues, with a freeze on HGV excise duty and a 12-month suspension of the HGV Road User Levy announced in a bid to boost the sector.

It is unlikely, however, that these policies will remedy the largely global issue of logistical shortages.

Overall, the budget was somewhat anti-climactic for those of us in the timber industry, with the focus mainly on areas outside our jurisdiction.

The CPA have done an excellent job of summarising the budget with their construction specific overview which can be viewed here.

The Institute for Fiscal Studies has also provided a non-partisan and rigorous analysis of yesterday’s events here.

The budget was not the only big event this week, with the World of Wood Festival kicking off with the online and physical launch. The festival continues next week where we talk to CEI-Bois Director Paul Brannen live from the COP26 summit – be sure to get your online tickets here.

We will also be launching our first technical paper as the TDUK on the carbon-related impacts and benefits of timber in construction. 

You can view all the events via the WoW website.

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